Commentary

First Take

Let my CEO go

Commentary: The government should not quibble with the rebel exec

NEW YORK (MarketWatch) -- Robert Benmosche has a very lively way of running a zombie company.

Benmosche, not even four months into the job of chief executive of American International Group Inc.
AIG, +0.23%
is threatening to quit. He claims the government is squeezing the insurer too much on pay, according to a Wall Street Journal report Wednesday citing anonymous sources. See full story on Benmosche.

It's not the first time Benmosche has made headlines. Shortly after his hire in August, he criticized Andrew Cuomo, the New York State Attorney General who is investigating AIG, among other companies. Benmosche also said he intended to build AIG, not tear it down.

His penchant for stirring things up seems aimed at building morale at a company beaten down by public scorn. AIG has a tremendous task ahead of it. It must repay $100 billion to throw off the yoke of government stewardship. Divisions must be sold, profits handed over to Uncle Sam rather than churned back into the business.

It's not a bad tactic, and really more calculated noise than anything else. But should push come to shove, government officials should call Benmosche's bluff. At $10.5 million, his compensation package is the biggest approved by pay czar Kenneth Feinberg and a stark contrast to his predecessor, Ed Liddy, who worked essentially for free.

Benmosche risks making the debate over AIG one between the company and taxpayers, who are overwhelmingly in favor of restricting pay. He's going to lose that battle. Politicians are in no position to look as if they're bending to a Wall Street fat cat's demands.

So, if Benmosche wants to quit, the board, the government and the company should not only show him the door, but shove him through it.

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